The Effect of Financial Technology (Fintech) on Development of SME with Financial Inclusion as A Mediation Variable: Study on SME'S Creative Economic Sector in Lombok
Abstract
This study aims to analyze the influence of Financial Technology (Fintech) on financial inclusion and the development of SMEs in the creative economy sector of Lombok. This research is associative with a quantitative approach. The sample in this study was 200 SMEs in the Creative Economy Sector. The data collection tool used in this study was a questionnaire. Hypothesis testing using full model structural equation modeling (SEM) Partial Least Square analysis. The result showed that Digital Fintech Finance has a significant positive effect on the development of SMEs. With the presence of Financial Technology, SME players can access all information in fulfilling all forms of their operations. Financial Technology Fintech has a significant positive effect on financial inclusion. Users of technology-based Financial Technology services in transactions with all Financial Technology users show trust obtained because financial inclusion has provided a safe regulator and information on future risks. Financial Inclusion has a significant positive effect on the development of SMEs. Financial Inclusion as a forum for delivering regulations in transactions between fellow SME business actors is beneficial in this very sophisticated era. Financial Technology (Fintech) on the Development of SMEs Mediated by Financial Inclusion has a Significantly Positive Effect. The development of complex services in the financial system certainly impacts how it is easier for industry players to access a service needed to support business activities.
Keywords
Full Text:
PDFReferences
Adriani, D., & Wiksuana, I. G. B. (2018). Financial Inclusion in Relation to the Growth of MSMEs and the Level of Community Welfare in the Province of Bali. Udayana University Management E-Journal, 7(12), 6420.
Aqida, M. S., & Fitria, S. (2021). The Effect of Financial Access on the Growth of MSMEs with Islamic Financial Literacy as a Mediator Variable in Jambi City. Diponegoro Journal of Management, 8 (2009), 1–15. http://repository.uinjambi.ac.id/9242/.
Aribawa, D. (2016). The influence of financial literacy on the performance and sustainability of MSMEs in Central Java. Journal of Business Strategy, 20, 1–13.
Arner, D. W., Barberis, J. N., & Buckley, R. P. (2016). The Evolution of Fintech: A New Post-Crisis Paradigm? SSRN Electronic Journal, 47, 1271–1319.
BPS (2019).https://www.bps.go.id/subject/35/usaha-mikro-small.html.
Buckley, D. J. R. (2016). Fintech Evolution: A New Post Crisis Paradigm?.
Cooper, D. R., & Schindler, P. S. (2006). Business research methods.
Demirguc-Kunt A, Klapper L, Singer D, Ansar S, Hess J. (2018) The Global Findex database 2017: measuring financial inclusion and the Fintech revolution. World Bank, Washington DC.https://openknowledge.worldbank.org/handle/10986/29510 Accessed 15 Nov 2021.
Eresia-Eke, C. E., & Raath, C. (2013). SMME Owners' financial literacy and business growth. Mediterranean Journal of Social Sciences, 4, 397–406.
Eresia-Eke, C. E., & Raath, C. (2013). SMME Owners' financial literacy and business growth. Mediterranean Journal of Social Sciences, 4(13), 397–406. https://doi.org/10.5901/mjss.2013.v4n13p397.
Finance, I., & Dank, A. (2021). Fintech, financial inclusion, and sustainability: a quantitative approach to Muslim SMEs. 1, 54–67.
Fitriani, H. (2018). The Contribution of Fintech in Improving Peer to Peer Lending Sites on Agriculture in Indonesia. EL BARKA: Journal of Islamic Economics and Business Faculty of Islamic Economics and Business, 01, 1–26.
Ghozali, Imam. 2011. "Application of Multivariate Analysis With SPSS Program." Semarang: Diponegoro University Publishing Agency.
Gomber, P., Koch, J. A., & Siering, M. (2017). Financial Technology and FinTech: Current research and future research directions. Journal of Business Economics, 67, 537-580.
Hartono, B. (2013). Computer Based Management Information System.
Hudson, M., Smart, A., & Bourne, M. (2001). Theory and practice in SME performance.
Hutabarat (2018).Financial literacy and financial technology affect financial inclusion in the Jabodetabek community. Bogor Agricultural Institute.
Immanuel Adhitya Wulanata Chrismastianto, “SWOT Analysis of Technology Implementation Finance on the Quality of Banking Services in Indonesia,” Journal of Economics and Business, Edition.
Ion, & Alexandra. (2016). Financial Technology (FINTECH) and Its Implementation On the Romanian Non-Banking Capital Market. SEA - Practical Application of Science, XVIII(1), 47–54.
Iriana, R. N. H. (2021). The Effect Of Fintech On The Financial Inclusion Of Msmes In Magelang City (Doctoral dissertation, Thesis, University of Muhammadiyah Magelang).
Iriana, RNH (2021). The Influence of Fintech on the Financial Inclusion of SMEs in Magelang City. http://eprintslib.ummgl.ac.id/3168/.
Lodge, G., Zhang, H., & Jegher, J. (2015). IT spending in banking: A global perspective. London: CELENT. Obtenido dehttp://www.celent.com/reports/it-spending-banking-globalperspective-2.
Makina, D. (2019). The Potential of FinTech in Enabling Financial Inclusion. In Extending Financial Inclusion in Africa (pp. 299–318).
Manyika, J., Lund, S., Bughin, J., Woetzel, JR, Stamenov, K., & Dhingra, D. (2016). Digital globalization: The new era of global flows (Vol. 4). San Francisco: McKinsey Global Institute.
Measurement systems. International Journal of Operations and Production Management, 21.
Muzdalifa, I., Rahma, I. A., & Novalia, B. G., (2018). The Role of Fintech in Improving Financial Inclusion in MSMEs in Indonesia (Islamic Finance Approach). Masharif Al-Syariah Journal: Journal of Islamic Economics and Banking, 3(1). https://doi.org/10.30651/jms.v3i1.1618.
Muzdalifa, I., Rahma, IA, & Novalia, BG (2018). The Role of Fintech in Improving Financial Inclusion in MSMEs in Indonesia (Islamic Finance Approach). Masharif Al-Syariah Journal: Journal of Islamic Economics and Banking, 3.
No.1 Vol. 20, Faculty of Education, Pelita Harapan University, Tangerang, 2017, p.134.
Nopiyani, M. (2021). (2021). The Effect Of Financial Literacy And Financial Self Efficacy On Financial Inclusion Through Financial Technology (Survey on Students of the Teacher Training and Education Faculty of Siliwangi University Class of 2018) (Doctoral Dissertation, Siliwangi University). 4(1), 1–23.
Nopiyani, M. (2021). THE Effect Of Financial Literacy And Financial Self Efficacy On Financial Inclusion Through Financial Technology (Survey on Students of the Teacher Training and Education Faculty of Siliwangi University Class of 2018) (Doctoral Dissertation, Siliwangi University).
Now, Uma.(2011). "Research Methodology for Business. Jakarta: Salemba Empat." Annals of Tourism Research.Yanti, WIP (2019). The effect of financial inclusion and financial literacy on the performance of MSMEs in North Moyo District. Journal of Management and Business, 2(1).
Nugroho, A., & Purwanti, E. Y. (2018). Determinants of Financial Inclusion in Indonesia (Global FINDEX 2014). Journal of Development Dynamics, 1, 1–13.
Nurohman, Y. A., Kusuma M. & Narulitasari, D. 2021).Fintech, Financial Inclusion, and Sustainability: A Quantitative Approach of Muslims SMEs. International Journal of Islamic Business Ethics, Vol. 6.
Nurohman, Y. A., Kusuma, M., & Narulitasari, D. (2021). Fin-Tech, Financial Inclusion, and Sustainability: a Quantitative Approach of Muslims SMEs. International Journal of Islamic Business Ethics, 6(1), 54. https://doi.org/10.30659/ijibe.6.1.54-67.
OJK. (2017). Indonesian Financial Literacy National Strategy (Revisit 2017). Financial Services Authority, 1–99.
Ozili, P. K., (2018), Borsa Istanbul Review Impact of Financial Technology on Financial Inclusion and Stability, Paper. Borsa Istanbul Review.
Ozili, P. K., (2018). Impact of Financial Technology on financial inclusion and stability. Borsa Istanbul Review, 18(4), 329–340. https://doi.org/10.1016/j.bir.2017.12.003.
Panggabean, FY, Dalimunthe, MB, Aprinawati, A., & Napitupulu, B. (2018). Analysis of Financial Literacy on the Continuity of Culinary Business in Medan City. Journal of Management and Finance, 7(2), 139-139.
Rahardjo, B., Ikhwan, K., & Siharis, A. K. (2019). The influence of financial technology (fintech) on the development of SMEs in Magelang City. In Proceedings of the 2019 Untidar Faculty of Economics National Seminar.
Rusydiana, A. (2019). How to Develop the Sharia Fintech Industry in Indonesia? Interpretive Structural Model (ISM) Approach. Al-Muzara'ah, 6, 117–128.
Safitri, R., & Andriansyah, M. (2020). Financial Technology Acceptance Analysis (FINTECH) Against the Use of the OVO Fintech Application. Journal of Management Partners, 4(4), 538-549.
Santoso, I., & Madiistriyatno, H. (2021). Quantitative Research Methodology. Indigo Media.
Sari, P. B., & Dwilita, H. (2018). Prospects of Financial Technology (Fintech) in North Sumatra in terms of Financial Literacy, Financial Inclusion, and Poverty. Accounting Studies, 19, 9–128.
Sarma, M. (2012). Index of Financial Inclusion - A measure of financial inclusiveness. In Berlin Working Papers on Money, Finance, Trade, and Development.
Sarma, M. (2012). Index of Financial Inclusion–A measure of financial sector inclusiveness. Center for International Trade and Development, School of International Studies Working Paper Jawaharlal Nehru University. Delhi, India.
Scott, S. V., Van Reenen, J., & Zachariadis, M. (2017). The long-term effect of digital innovation on bank performance: An empirical study of SWIFT adoption in financial services. Research Policy, 46(5), 984-1004.
Sekaran, U., & Bougie, R. (2017). Research Methods for Business: A Skills-Development Approach (6th ed.). Salemba Four.
Shofawati, A. (2019). The Role of Financial Technology to Strengthen Financial Inclusion and the Growth of SME in Indonesia. KnE Social Sciences, 3(13), 389. https://doi.org/10.18502/kss.v3i13.4218.
Shofawati, A. (2019).The Role of Financial Technology to Strengthen Financial Inclusion and the Growth of SME in Indonesia.2nd ICIEBP The 2nd International Conference on Islamic Economics, Business, and Philanthropy (ICIEBP) Theme: “Sustainability and Socio Economic Growth”,KnE Social Sciences, 3.
Siyoto, S., & Sodik, M. A. (2015). Basic research methodology. Media Literacy Publishing.
Soper, D. S. (2022). Sobel Test Calculator for Mediation Significance [Software]. Available from https://www.danielsoper.com/statcalc.
Sugiyono. 2018. Quantitative Research Methods. Bandung: Alphabeta.
Sundarasen, S. D. D., Rahman, M. S., Othman, N. S., & Danaraj, J. (2016). Impact of financial literacy, financial socialization agents, and parental norms on money management. Journal of Business Studies Quarterly, 8(1), 137.
Theo, Suhardi. (2012). Entrepreneurship. Bandung: UNPAD PRESS. Tika, Moh. Pandu. (2014). Organizational Culture and Company Performance Improvement. Jakarta: Earth Literacy.
Wise, S. (2013). The Impact of Financial Literacy on New Venture Survival. International Journal of Business and Management, 8, 30–39.
DOI: http://dx.doi.org/10.18415/ijmmu.v10i4.4749
Refbacks
- There are currently no refbacks.
Copyright (c) 2023 International Journal of Multicultural and Multireligious Understanding
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
https://ijmmu.com
editor@ijmmu.com
facebook.com/ijmmu
Copyright © 2014-2018 IJMMU. All rights reserved.